It would seem that a lot of companies should have been doomed for not making money, including the American automotive companies, but that’s not how finance works when you are the 800lb gorilla in your field.
A lot has to do with trust and confidence in a corporations ability to convince people that it has intrinsic value. Newspapers have been getting away with this for years, even though their business model died when CraigsList went global.
Didn’t people say Google would never be able to successfully monetize search?
YouTube is now the second leading search site. People now want to watch video to answer questions as well as reading text.
If you’ve seen the new audio transcription tools in Adobe Premier, you know it’s not long until video is easily searchable as well. That will change the value of YouTube considerably as the largest depository of video online.
Getting back to value, most people don’t realize that all those annoying ads they can’t stand have value to them- because they were used to subsidize the content they’ve been enjoying for “free” for all these years.
The mass media have been asleep at the wheel, believing that as long as they have great content, they’ll have big audiences and can continue to count on advertisers accepting that some of their message will be skipped or delivered blindly.
Those days are over.
No advertiser will be willing to accept less than 100% targeted delivery in the near future, and this is where Google will deliver the ultimate power play of modern business history.
Google was never in the business to monetize content: it’s in the business to monetize you- the viewer. By building a trusted relationship, based on providing a superior service (search) they have earned the right to become your middleman in serving you premium content in exchange for showing you personalized relevant ads.
They know you from your search history. They know you from your browsing habits. They know you from your gmail account, your Google voice account, pretty soon, you realize you have a benevolent big brother who knows you better than you do. Google has been called the database of future intentions- and by comparing you to others like you, they can make some pretty good guesses of what you’ll like and won’t like- much like Netflix and Amazon do with their suggestion engines.
You watch ads relevant to you, they serve you the content you want, advertisers reach exactly who they want, Google gets a better understanding of you with each ad and your response (did I mention you’ll have to respond to every ad with a brief thumbs-up, thumbs-down or answer a few questions?)
As the mass media model fails- Google will be in the unique position to be your agent in brokering ads to pay for your content.
That’s their business model, providing value to you and to the advertiser, and YouTube is one of the keys.
I saw a tweet from Jason Calacanis before the e-mail hit my inbox. Netflix was raising rates for a second time in 5 months on blu-ray disc access. If you are in marketing at Netflix, please note, he has 64,188 followers. Take that- and retweets- and you see the exponential nature of Twitter- instantly.
His original tweet:
NetFlix Blu-Ray bait and switch FAIL! Jump from $1 a month to $4 a month automatically?!!? http://post.ly/CYQ
Then, follow over to a twitter search on “Netflix” and you see the effect- instantly- the twitterverse is alive- with cancellations, downgrades and unhappieness. This is an opportunity for Blockbuster- but, they probably don’t know how to take advantage of it.
Over on Engadget- it’s breaking news:
Ruh roh. In a move that will undoubtedly cause an incredibly raucous stir, only to fade away as movie renters realize that Netflix is still the best deal going, America’s most adored by-mail rental service is hiking the price of Blu-ray rentals once again.
The comments are flowing- who knows how many people will be blogging about this, and what kind of damage will be done. The pricing increases are heavy handed to begin with- but the automatic “Opt-in” to a price increase is a brand suicide move. Never, ever, force an automatic price increase without some kind of action by the customer.
Either way- be careful how you treat your customers these days, they have the tools to talk amongst themselves and plot your downfall. Both Netflix and Twitter are populated by opinion leaders- who are very tech savvy. Your brand is only as good as your community around it. Netflix’s brand value is totally connected to the way their customers feel about them (as well it should be).
It was Sears, that first got it right when it came to presenting product options. They had “good” “better” and “best” and that was all you needed to make up your mind.
I recently went to Sony’s site to look at 37″ flat screen televisions- so that I could figure out which one was right for me- and I came back more confused than when I started. This is bad news for any marketer, because if it’s not clear what you are selling, the customer will find someone else quite literally at the touch of a few keys.
There are some fundamental things that go into making a buying decision- and just being part of the evoked set these days is a major accomplishment. Remember that your brand lives outside the world you control, so you have to make it really easy for people to talk about your products. Need an example: look at Amazon.com. So many people go there for reviews before going to the “professionals” to make their buying decisions- so it behooves you to have your products there if possible.
I don’t know how many sites I’ve been to where it’s impossible just to link to a single product info page- very annoying for anyone who wants to write about the widget they just bought and love. Make sure you make it easy for social media to link back- and even better, give them the opportunity to build links on your site back to theirs- it’s called sharing the love.
Complex product matrices make sense to your brand managers, but often leave the consumer scratching their head. Think it’s just in high-tech? Nope, same problem with a local restaurant. They had a great brand, the name of the place- but as they grew, they added a coffee shop/cafe (first brand extension) then a “Jazz room” - second brand extension- and before long, you needed a tutor just to decide where to sit and what to eat. Keep it simple, stupid still applies.
If you need yet another example, go compare Dell.com and Apple.com to try to pick a laptop. Guess which one makes ease of buying a priority? You don’t even have to go to know the answer. Simplicity in product offerings and clear differentiation is more important than ever. Make sure you don’t over think your offering, because your customer won’t.
David Meerman Scott is becoming one of the social media Illuminati, with his books, talks, blog and tweets. The cool thing about all this social media stuff- is a lot of it is good old business common sense repackaged in a 2.0 format.
His post, which I’ve excerpted most of here- is one of those common sense things that corporate America needs to relearn. No matter how many amazing, expensive, beautifully shot car commercials we see- we still have to complete a transaction at the local level- with a, that’s right- car salesman. Note to GM- this is part of the reason Saturn started out so strong- you cut out the worst part of buying a car- but I digress, read what David says:
People want to do business with people. We’re human, and we crave interaction with people who know us. When you build content especially for your buyer personas, you build a relationship with people before you’ve even met them.
How about the opposite case? Have you recently visited a company Web site or blog and said, “Wow These guys understand me” Didn’t it make you feel different from how those boring old sites you usually see do?
When online content seems created by some nameless, faceless corporate entity, it doesn’t entice us. And we’re just not interested in doing business with that company. A corporate-brochure site will never start a World Wide Rave.
We all want to do business with other humans. We want to know there’s a breathing person behind the Web site or blog that we’re reading. And we want to know that those humans on the other side understand and want to help us. A great site or blog or YouTube video, created especially for us, drives us to action. We want to do business with people who understand our problems.
There’s no secret to building great online information. Start by understanding your buyer personas, not by hyping your products and services.
The reason social media driven sites work so well, as opposed to brochure sites is that there is a chance to have a conversation. People want to be heard, and the reason they are on your site is they are looking for answers for their problems. They probably came to your site because Google put you there as “the expert” on their search- it’s your job to prove them right.
In my recent search for a printer, the company that I eventually ended up doing business with seemed like the expert in the area of large format color printers. Their site was extensive, but what got me to call, was watching a youtube video explaining and comparing two printers. The people weren’t professional actors- they were the sales team. The production wasn’t slick, it was probably flip. When I called, the people on the phone seemed to care about me getting the best possible printer at the best possible price. It wasn’t about them- it was about solving my printing problems.
A lot can be said about advertising, design, strategy, marketing- but in the end, people do business with people they know. We tell this to our clients. We remind them constantly that if they aren’t in the evoked set of possible suppliers (either in Google or in top of mind) they don’t exist. What can you do to increase your perception of expertise and accessibility to your clients?
Think about it. If you want to talk about it, feel free to call me, 937.228.4433. We’re here to solve your social media and marketing problems by helping you know more people to do business with.
I thought about writing this post in 140 character Haiku- but that would be tough and time consuming. Twitter is fast and instant. The simple answer to “What are you doing” can be the ultimate test bed for concepts to our attention deficit audiences. Want to find out what people think: test it on your followers.
Leading tweetheads can make hits magically appear on a site in minutes with a 140 character or less tweet with a link. Launching a new product? Want to test a headline? Tweet the variations to different audiences and see what hits show up. A whole new practice of market research will appear- with the ability to get almost instant feedback.
Soon PR and ad agencies will be evaluated by their social network juice. How many people can you connect to who will work as brand evangelists? Crispin Porter & Bogusky launched Subservient Chicken for Burger King when the agency was 150 staffers- by just emailing their friends about the site. Quickly, the site ended up on top of the viral site hall of fame list. Now the agency is at 600+ employees.
While Twitter is still only reaching a small subset of the population at large, it’s reaching the all critical early-adopter, influencer crowd. So along with client lists and credentials, maybe hiring an agency should also involve checking out their social networks. Friends, followers and connections are the new currency of media power- and a great 140 character (or less) headline will be critical.
Will the number of followers on twitter, or your page rank turn you into a consumer protection force in the near future?
Will companies start being extra nice to those who have social media mojo?
We think it’s happening already- and wonder if ad budgets shouldn’t be slashed and diverted to “customer satisfaction” funds instead.
Peter Shankman is a micro-brand on his own. His Twitter account (skydiver) has 19,093 followers. He publishes the “Help a reporter out” e-mail blast which reaches pr pros across the country. He has a book on PR stunts, he has a blog. He’s web 2.0 connected and plugged in.
So when he tweets about a bad customer service experience from TiVo it gets 35 comments in a few hours.
What actually happened re:@tivo this morning thatI can’t fit into a tweet: http://tinyurl.com/8houvz - S O very displeased. Feel cheated.
No matter how big or small your ad budget is, refunding $29 makes more sense than feeding a web 2.0 PR bonfire.
Bottom line, TiVo can’t afford these kinds of mistakes to normal people, never mind someone with a posse.
Here are some pieces of Web 2.0 customer service advice:
Always have a customer service ombudsman contact for your site that is monitored 24/7 to respond immediately to potential complaints.
Have Google Alerts set up on your product and brand name.
Respond on the “offending” site- within the comments asap- even if it’s a “We’re looking into this”
Admit your own mistakes on your company blog- and make sure you give credit to the customer for pointing out where you screwed up so you won’t do it again. This was Dell’s solution to the Dell Hell scenario.
Have a company twitter account- where your fans can follow your brand.
Make sure you have support forums on your site that are moderated and useful. There is nothing worse than having customers going to other experts to solve problems with your products or service and having the competition recommended.
It wasn’t more than 8 hours before Peter had a response from TiVo. I don’t know if my e-mail to their Investor Relations department was part of the solution, but, in it- I said I didn’t think they really wanted to make a million dollar PR blunder over a $29 refund to a previously happy customer.
While many companies used to say “the customer is always right” we believe the new adage should be “the community is always right.” Offend one, and risk offending many.
Will having a huge network make you a one person consumer rights team? We’ll see soon enough.
. So many people go there for reviews before going to the “professionals” to make their buying decisions- so it behooves you to have your products there if possible.